ACA Financial Guaranty Corp. can move ahead with an appeal of a court decision in a civil case against Goldman Sachs Group Inc., New York State Supreme Court in Manhattan ruled.

ACA, a bond insurer, has alleged it lost money in a complex deal involving a collateralized debt obligation known as Abacus 2007-AC1 because Goldman misled ACA about an investment position that hedge fund Paulson & Co. had taken on the instrument.